Hungary Economic Sentiment December 2016

Hungary: Economic sentiment improves in December

December 21, 2016

The GKI economic sentiment indicator for Hungary edged up from November’s minus 2.2 points up to a five-month high of minus 0.9 points in December. December’s print reflects an improvement in both business and consumer confidence.

Business sentiment rose from 2.8 points in November to 3.7 points in December. December’s print came on the back of improved economic prospects for next year in all economic sectors. Intentions to employ rose in all except for construction, and business expectations in all sectors were more optimistic except in services which remained broadly unchanged.

Consumer confidence improved from November’s minus 16.5 points to minus 14.1 points. December’s print marks the best reading since April 2006. The rise came on the back of consumers’ more upbeat views on their own financial position in 2017 and their increased willingness to purchase large ticket items

FocusEconomics panelists expect private consumption to expand 4.2% in 2017, which is up 0.1 percentage points from last month’s projection. For 2018, the panel expects private consumption to grow 3.4%. Panelists expect fixed investment to decrease 7.2% in 2017 which is down 0.2 percentage points from last month’s estimate. In 2018, the panel sees investment expanding 4.2%.

According to revised data released by the Statistical Institute (KSH) on 11 August, industrial output rose a working-day adjusted 6.5% year-on-year in June, which was a slight acceleration from May’s 6.2% expansion.

According to revised data released by the Statistical Institute (KSH) on 12 July, industrial output in May rose a working-day adjusted 6.2%, which marked a considerable improvement from April’s 2.5% expansion.